Mercedes going solo for new A and B-Classes
Mercedes' small cars, the A-Class and B-Class, have not been the runaway success that the German automaker had hoped they would be, partially due to high costs of production that drove retail prices up above their competitors. That's why Mercedes-Benz had been looking at forming a partnership with a rival automaker in order to reduce costs and produce more competitively-priced entry-level models. But after discussions were held with both BMW and Fiat, Mercedes has opted to go it alone.
Read more after the jump.[Source: Inside Line]
According to CEO Dieter Zetsche, partnering with another automaker for the next-generation A and B would inhibit M-B's own strategy for the small cars. Benz's own program for the A and B classes would be based off a common platform, smaller than that of the C-Class, with front-wheel-drive and "high-mounted transverse-sited engines". Industry analysts suggest the next A-Class could be offered only as a three-door model, with the potential for a convertible version to follow. The B-Class variant, meanwhile, is expected to be bigger than the current model, about the size of a Volkswagen Touran minivan. Rumors are circulating that a third model is in the works, as well: a compact SUV placed below the upcoming GLK in the Mercedes line-up to battle the likes of the Volkswagen Tiguan and BMW X1. Since it won't be building the A and B without help from other automakers, Mercedes is back to square one when it comes to cost-cutting measures, and is reportedly considering building a lower-cost assembly plant in eastern Europe to mitigate production costs. Unfortunately, building new plants isn't that cheap, either.
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Reader Comments (Page 1 of 1)
Alex 2:38PM (12/20/2007)
lacking sales can also be atributed to their after-though designs. there is nothing that sets them appart from the pack. if i'm buying a sub-compact from a luxury auto maker, i want it to look the part.
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Flea 2:49PM (12/20/2007)
heh, I remember the first A-class toppling over sometimes. They should really have collaborated with FIAT, they know a bunch about making small cars and could have been paid with a C or E-class chassis for the new alfas...
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carguy 3:46PM (12/20/2007)
Mercedes seems to be clueless about small cars. The first A-class seemed to combine the ride and finish quality of early Korean cars with German luxury car prices. They would do well to partner with someone who has a better track record with that market segment.
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LTZ 3:50PM (12/20/2007)
I find it a true shame that they're completely changing the concept of the baby Benz (A-Class). My mother owned the old model which was truly the car from hell, with a cheap ugly interior, a ride stiffer than a go-kart which would cause you to almost snap your spine over every bump, numerous electrical problems and many other issues. Despite all this my mother loverd it for its size and handling around town. The W168 was, for better or worse, a pioneer for its concept.
Now she owns the current generation (A170 Avantgarde) which is such an improvement. It rides like a luxury sedan with its selective damping system and longer wheelbase, the good looking interior is serene and well manufactured and I actually think the W169 is quite a stylish car. It has become a Mercedes-Benz, if that even still exists since the demise of the W124 E-class. I won't deny it, I'm a Mercedes fan but I feel that one some cars they have gone a bit too far (the SLK, they spoiled the looks of the SL on the facelift model, and what the heck is that GLK??)
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Mike 4:01PM (12/20/2007)
MB is a lux car maker, not a sub-compact car maker, that is what SMART is for. Hence the $h1tty sales. The MB A-Class is the suicidal equivalent to the VW Phaeton. When will these people learn, brand image is built by the publics perception...not made by a manufacturers intentions. It's Marketing 101.
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Kumar 4:02PM (12/20/2007)
They need to calve off the A and B so a separate brand, like scion and mini (I argue the 1 only came back due to the success of the mini).
Then they can hecho those suckers in Mexico, put a good diesel in them, and sell them in the u.s. without hurting their preciously dumb imaginary brand image. Who doesn't know that cab drivers in europe drive benzes?
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Mark 5:37PM (12/20/2007)
Why does Autoblog make up things? Why does Autoblog not even both going to the Automotive News Europe database (which I know you guys have access to) and actually bother checking sales figures before running false information?
And it is not as if this happens rarely. It happens almost daily. Check your facts. Simple rule of the media. The A-Class and B-Class sell just fine, with the B-Class easily haven exceeded it's sale expectations when it launched.
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HeyHuub 9:22AM (12/21/2007)
A and B class both sell pretty good.
Heck, the C class is the only merc that sells better then the B-Class where i live.
Andrew 3:18PM (12/21/2007)
I totally agree, I'm here in Belgium and the A class Mercedes is everywhere! It can't be doing that bad, although, if it's the cost of manufacturing that is killing them, that is a whole different matter.
Why not get together with Renault or Citroen/Peugeot? Both are proven in the small car market.
Chris 3:32PM (12/22/2007)
I actually own the B200 Turbo, and think it is by far one of the most flexible cars I've ever owned. Good on gas, comfortable, spacious (especially with the back seats down), safe and sturdy. I think that the fit and finish in the B is great, and it has been reliable (I suspect that the lack of the insane electronic gadgets that MB loves to put in their higher-end cars has helped keep it out of the shop!). Not a sports car, but it handles very well and can cruise at high speeds very comfortably I lots of B's here in Canada, and the A-Class cars were everywhere when we went to Italy last summer. I didn't get the impression that these cars were flopping. I know they don't cater to American tastes, but there are a lot more non-Americans in this world.
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SteveInRoppongi 10:27PM (12/27/2007)
Isnt that the new 2008 Honda Fit but more expensive and without any cool aftermarket Mugen/Spoon parts? I think i'd go for the sweet Fit over this quite boring Benz.
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